Robust Demand Tightening Oil Market, IEA Says
LONDON, Feb 13 (Reuters) – Stronger-than-expected demand has drained oil inventories to the lowest level since 2008, tightening the market and defying predictions of a glut, the West's energy watchdog said on Thursday.
The International Energy Agency (IEA) said oil inventories in the developed world plummeted by 1.5 million barrels per day (bpd) in the last three months of 2013, the steepest quarterly decline since 1999.
The IEA, which advises most of the largest energy-consuming countries on energy policy, becomes the third major forecaster this week to predict higher oil use as economic growth picks up in Europe and the United States.
"Far from drowning in oil, markets have had to dig deeply into inventories to meet unexpectedly strong demand," the IEA said in its monthly oil market report.
The IEA raised its forecast for global oil demand growth this year by 50,000 bpd to 1.3 million bpd.
That was boosted by a rebound in demand in North America and Europe after several years of declining consumption.
The Paris-based agency increased its estimate of the demand for oil from the Organization of the Petroleum Exporting Countries (OPEC) from last month's report by 100,000 bpd to 29.6 million bpd .
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